RLAM launches Strategic Bond fund

Royal London Asset Management RLAM has announced the launch of the RLAM Strategic Bond fund.

The fund aims to provide an attractive total return through active investment management in all types of bonds, some equities and also derivatives. It will jointly be managed by Eric Holt, RLAM Head of Credit and manager of the RLAM Sterling Extra High Yield Bond fund, and Paul Doran, Head of Derivatives at RLAM.

The £30 million fund will offer private investors access to techniques which hitherto only institutional investors have been able to take advantage of. Put another way, it will be able to invest across the range of fixed income assets, to use derivatives to enhance returns and to reduce risk, in particular interest rate risk, when the managers see fit. And it may also invest in shares when opportunities become available.

Eligible for a stocks & shares ISA, as well as ISA/PEP transfer purposes, the fund comes with an initial charge of 4% and a 1.25% annual management fee.

Minimum investment is £1,000 lump sum or £50 per month

Investors can choose to take income quarterly payments or reinvest for higher total returns reinvested income will not be subject to an initial charge.

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2006-10-04 10:22:43 © Moneyextra.com